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Mr N KamrajhManager: Pilot CO2 Storage Project

www.sacccs.org.za

June 20172nd International Workshop on Offshore Geologic CO2 Storage

Hosted by

Contents

South Africa’s Energy Profile

South Africa’s Carbon Capture and Storage Programme

Offshore Assessment

South African Energy

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South African Energy Chain

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SUPPLY TRANSFORM TRANSPORT END USE

Oil

Natural Gas

Coal

Gas

Electricity

Eskom

and Others

Coal

PetroSA

Export

Sasol

Road/Rail

Pipeline

Oil Refineries Rail

Road

Pipeline

Liquid

Fuels

Biomass WoodPerson/Road

Hydro

Nuclear

Transmission

Wires

“Washery”

Koeberg

Sasol

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CO2 Emissions

SOURCE: CSIR/DME

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CO2 Emissions Quantification

Mt % EmissionSEQUESTRABLEElectricity 161 65Industrial 28 11Other Energy 30 12Manufacturing 30 12

Synfuel Industry ~30 million tonnes ~95% CO2

NON-SEQUESTRABLEWaste 10 6Agriculture 48 27Fugitive 42 24Transport 22 21Heat Production 37 21

Total 408

`

249 Mt

159 Mt

61 %

39 %

SOURCE: CSIR/DME

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Carbon Capture and Storage is a Clean Coal Technology

TRANSITIONClean Fossil Fuels Technologies

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Carbon Capture and Storage: Mandate

CCS is a part of the Long Term Mitigation Scenarios - DEAT

CCS is a Flagship Programme of the White Paper on Climate Change Response Strategy DEA

Cabinet endorsed the CCS Road map May, 2012

Hosted by

Objectives: Pilot CO2 Storage Project

• Demonstrate safe and secure CO2 storage in South African conditions [“Proof of Concept”]

• Increase the South African human and technical capacity

• Raise awareness of the potential importance of CCS

• Platform for government to develop a South African CCS legal and regulatory environment

FOCUS ON ZULULAND ON-SHORE BASIN

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2004: CCS Potential - Done

2010: Carbon Atlas - Done

Launched by Minister Oct 2010

2017: Pilot CO2 Storage Project -

Planned [10 to 50 thousand tonnes]

2025: Integrated Demonstration Plant -

Planned [100’s thousands tonnes]

2035: Commercial Operation -

Planned 2025 [millions tonnes]

Time/Scale for Carbon Capture and Storage in South Africa

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2004: CCS Potential - Done

2010: Carbon Storage Atlas -Launched by Minister Oct2010

2017: Pilot CO2 Storage Project -Planned [10 to 50 thousands of tonnes]

2025: Integrated Demonstration Plant -Planned [100s thousands of tonnes]

2035: Commercial Operation -Planned [millions of tonnes]

South African CCS Road Map

2016: Existing data Analysis

2017: Exploration

2019: Pilot Project Injection

2022: Pilot Project Conclusion

2025: Closure

PCSP Tangibles

REVIEW

REVIEW

REVIEW

REVIEW

Pilot CO2 Project Tangible Outputs

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The Development of the Pilot CO2 Storage Project

DESIGN, PROCUREMENT, CONSTRUCTION, OPERATION, CLOSURE & POST-CLOSURE

SITE CHARACTERISATION

BASIN CHARACTERISATIONCURRENT DATA ANALYSES

AtlasGeological Storage of

CO2

Zululand A

STOP/REVIEW

Zululand S/DSite(s)

Assessment

NO

YES

NO

YES

ConfirmSite(s)

Final Site Select Site(s) Characterisation

NO

NO YES

YES

Engineering Design Procure/Construct Operation Closure Post-Closure

ExistingData

AnalysisShResultOK

SuitableSites

OtherSite(s)

Stakeholder Engagement

Afford Stakeholders an opportunity to raise concerns / issues and make suggestions; and

Treat them with respect.

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Funding

- South African Government – Department of Energy

- World Bank CCS Trust Fund

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Potential for Carbon Dioxide Storage in South Africa

Atlas indicated a Storage Potential:

150 Giga tonnes

At an “effective level”

98% off-shore

Need:

4 Giga tonnes

To store 40 million tonnes

For 100 years

Storage capacity (off-shore and on shore)

Based on the SACCCS Roadmap, the final part of the CCS programme in

South Africa will be to implement a programme of Carbon Capture and Storage

on a commercial scale. This will be at a Low Case involving 20Mt/a or a High

Case involving 40Mt/a, beginning around 2025.

The purposes of this study was to identify Basins and Sub-basins that might be

suitable for the storage of CO2 captured in the Commercial Operation.

The three main offshore basins considered were the Durban Zululand, the

Outeniqua and the Orange basin. A number of sub basins in the Outeniqua

Basin, the Bredasdorp, the Pletmos-Infanta and the Algoa-Gamtoos were also

considered.

A screening exercise to assess the suitability of these Basins and Sub-basins

was undertaken using the Bachu methodology, with the criteria adapted to the

specific requirements of the Commercial Operation in the South African

context.

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Possible CO2 storage opportunities in South Africa (Cloete, 2010,

Viljoen et al., 2010)

Basin Screening and Ranking

• Based on Stefan Bachu (2003) methodology (commonly accepted by the

CCS community)

Screening and ranking of sedimentary basins for sequestration of

CO2 in geological media in response to climate change

• Modified by CO2CRC in 2008

• Utilised and modified by Viljoen et al (2010)

• Modified by SLR for Nova Scotia, Baltic Sea and South Africa

• Study Commissioned by SACCCS and undertaken by SLR

Minimum criteria for consideration of sedimentary basins for CO2 Storage

Suitability Criterion Suitability Threshold Weight

1 Seismicity (Tectonic setting) < High (i.e., not in subduction zones) 0.06

2 Size > 2 500 km2 0.06

3 Depth > 800 m 0.07

4 Faulting intensity and dolerite dykes

and sheets

Low to moderate 0.07

5 On-/Offshore Onshore to shallow offshore 0.09

6 Reservoir: seal pairs At least one major extensive and

competent seal

0.08

7 Pressure regime Not overpressured 0.05

TOTAL 0.46

Proposed secondary qualifiers for assessing potential of sedimentary basins for CO2

storage

Potential Criterion Poor Potential Good Potential Weight

1 Hydrogeology Shallow, short Deep and/or long 0.08

2 Geothermal Warm Cold 0.09

3 Hydrocarbon potential None Large 0.08

4 Maturity Poor Mature 0.06

5 Coal seams Too shallow or too deep Between 400 and 1 000

m depth

0.04

6 Evaporites None Beds 0.01

7 Accessibility Difficulty Good 0.03

8 Infrastructure None or poor Moderate or developed 0.05

9 CO2 sources At >500 km distance At <500 km distance 0.08

10 Coal rank Anthracite - Lignite Sub-bituminous -

Bituminous

0.04

TOTAL 0.54

Criterion Increasing CO2 Storage Potential

Classes

1 2 3 4 5

1 Seismicity

(tectonic setting)

Very high (e.g.

subduction)

High (e.g., syn-

rift, strike-slip)

Intermediate

(e.g. foreland)

Low (e.g.

passive margin)

Very low (e.g.

cratonic)

2 Size Very small (<

1000 km2)

Small (1000 –

5000 km2)

Medium (5000

– 25000 km2)

Large (25000 –

50000 km2)

(> 50000km2)

3 Depth Very shallow (<

300 m)

Shallow (300 –

800 m)

Deep (>3500

m)

Intermediate

(800 – 3500 m)

4 Faulting intensity Extensive Moderate Limited

5 Hydrogeology Shallow, short

flow systems,

or compaction

flow

Intermediate

flow systems

Regional long-

range flow

systems;

topography or

erosional flow

6 Geothermal Warm basin

(>40oC/km)

Moderate (30 –

40oC/km)

Cold basin

(<30oC/km)

7 Reservoir – seal

pairs

Poor Intermediate Excellent

8 Coal seams None Very shallow

(<300 m)

Deep (>800 m) Shallow (300 –

800 m)

9 Coal rank Anthracite Lignite Sub-bituminous Bituminous

10 Evaporites None Domes Beds

11 Hydrocarbon

potential

None Small Medium Large Giant

12 Maturity Unexplored Exploration Developing Mature Super-mature

13 Onshore /

offshore

Deep offshore Shallow

offshore

Onshore

14 Climate Artic Sub-artic Desert Tropical Temperate

15 Accessibility Inaccessible Difficult Acceptable Easy

16 Infrastructure None Minor Moderate Extensive

Criteria for

screening

sedimentary

basins or

sub-basins

for

geological

storage of

CO2

(CO2CRC,

2008)

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Basins Characteristics Ranking

Bredasdorp Sub-basin

The Bredasdorp Sub-basin is a candidate for CO2 storage based on its low seismicity (tectonic setting),

favourable depth, limited faulting and fracturing, excellent reservoir/seals, hydrostatic pressure regime and

regional long-range saline flow systems. The sub-basin has no evaporites.

0.74

Orange Basin

The offshore Orange Basin is a candidate for CO2 storage based on its low seismicity (tectonic setting),

favourable depth, limited faulting and fracturing, excellent reservoir seal pairs, hydrostatic pressures,

regional long-range saline flow systems. The basin is unsuited for CO2 storage because its inaccessibility, no

infrastructure and no evaporites.

0.69

Durban Zululand Basin

The offshore Durban Zululand Basin is a candidate for CO2 storage based on its low seismicity (tectonic

setting), favourable depth, limited faulting and fracturing, hydrostatic pressures and regional long-range

saline flow systems. The basin is unsuited for CO2 storage because it is no infrastructure and no

evaporites.

0.6

Pletmos-Infanta Sub-

basin

The Pletmos-Infanta Sub-basin is a candidate for CO2 storage based on its low seismicity (tectonic setting),

favourable depth, excellent reservoir/seals, hydrostatic pressures and regional long-range saline flow

systems. The sub-basin is unsuited for CO2 storage because of its inaccessibility, no infrastructure and no

evaporites.

0.57

Algoa - Gamtoos Sub-

basin

The Algoa and Gamtoos Sub-basin is a candidate for CO2 storage based on its low seismicity (tectonic

setting), favourable depth, hydrostatic pressures and regional long- range saline flow systems. The sub-basin

is unsuited for CO2 storage because it is unexplored, inaccessibility, no infrastructure and no evaporites.

0.53

Conclusions

• Bredasdorp Sub-basin ranked the highest as it is the location of the offshore

Mossel Bay oil and gas fields.

• Orange and Durban Zululand ranked relatively high, with the former scoring

somewhat higher, possibly on account of the higher level of hydrocarbon

exploration providing better data.

• Durban-Zululand Basin- favours the Durban Basin, as much more of the

offshore Zululand Basin is in very deep water.

• The only viable option for the Commercial Operation is the offshore Durban

Basin assuming sufficient storage capacity can be identified. The pipeline

route is much shorter (550km) and has the advantage of existing pipeline

corridor routes

Note:

o If demonstration is needed to prove up commercial storage they

will need to be at the same location

Dynamic capacities

Annual injections and injection rates

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Full details available at

www.sacccs.org.za